GCL-SI guided a net loss for the reporting period to be in the range of RMB 120 million to RMB 150 million (US$16.9 million to US$21.2 million), compared to a net of loss of around US$18.6 million the first quarter of 2019. Image: GCL-SI
GCL System Integration Technology (GCL-SI) expects continued quarterly losses in Q1 2020, due to the COVID-19 related issues impacting its business operations in the reporting period.
The ‘Solar Module Super League’ (SMSL) member has now guided net losses in the year's first quarter to be in the range of RMB 120 million to RMB 150 million (US$16.9 million to US$21.2 million), compared to the US$18.6 million in net losses posted for the first quarter of 2019.
The SMSL noted that the COVID-19 outbreak had delayed its ability to restart production after the Chinese New Year and led to logistical restrictions, while raw material prices and logistics costs had risen.
The company was hampered in obtaining customer payments during shutdowns, adding to overall cost increases while revenues declined. This was compounded by a fall in overseas market demand, due to the spread of the pandemic.
GCL-SI plans to actively bid in China’s grid parity and bidding projects to expand production and product sales in the coming quarters, after the 2020 grid-connected electricity pricing policy for solar PV was recently issued by the National Development and Reform Commission and the National Energy Administration.
The company also expects demand to quickly recover in Europe, the US and other key markets once COVID-19 lockdown measures are phased out.
GCL-SI is expected to release 2019 full-year financial results and Q1 2020 results on April 25, 2020.
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